Google's TurboQuant AI Compression Algorithm Sends Memory Stocks Tumbling as Much as 5.7%

Google's new TurboQuant AI compression algorithm, which slashes memory requirements by up to 6x, is sending memory stocks tumbling, with SanDisk plunging 5.7%, Western Digital down 4.7%, Seagate sliding 4%, and Micron dropping 3%, as investors fear reduced long-term demand for DRAM and flash memory.

• Google unveils TurboQuant, a new compression algorithm that reduces AI memory requirements by up to 6x, sending memory stocks tumbling with SanDisk falling 5.7%, Micron dropping 3%, Western Digital declining 4.7%, and Seagate sliding 4%.
• TurboQuant compresses key-value cache in large language models to 3 bits without retraining, delivering up to 8x performance gains on H100 GPUs, raising concerns among investors about future demand for DRAM and flash memory.
• Analysts remain divided on the long-term impact, with Wells Fargo warning the technology could reduce memory capacity needs if widely adopted, while Lynx Equity Strategies argues it merely eases bottlenecks without destroying multi-year memory demand.